Report Title:

Condominiums; Association Board Members

Description:

Prohibits a member of any unit owners' association from serving on board if the association member is in arrears of $1,000 or more in maintenance fees, fines, or any other fees owed to the association for at least 3 months.

THE SENATE	S.B. NO.	2008
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO CONDOMINIUMS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 514B-107, Hawaii Revised Statutes, is amended to read as follows:

     "§514B-107  Board; limitations. (a)  Members of the board shall be unit owners or co-owners, vendees under an agreement of sale, a trustee of a trust [which] that owns a unit, or an officer, partner, member, or other person authorized to act on behalf of any other legal entity [which] that owns a unit.  There shall not be more than one representative on the board from any one unit.

     (b)  No resident manager or employee of a condominium shall serve on its board.

(c)  No person may run for election to or serve on a board if the person is in arrears of at least $1,000 in maintenance fees, fines, or any other fees owed to the unit owners' association for over three months.

(d)  If an association board member is in arrears of at least $1,000 in maintenance fees, fines, or any other fees owed to the unit owners' association, the board member in arrears shall be ineligible to serve on the board and shall promptly resign.  Any votes cast by a board member who becomes ineligible to serve on the board shall be void from the date of the board member's ineligibility.

     [(c)] (e)  An owner shall not act as an officer of an association and an employee of the managing agent retained by the association.  Any owner who is a board member of an association and an employee of the managing agent retained by the association shall not participate in any discussion regarding a management contract at a board meeting and shall be excluded from any executive session of the board where the management contract or the property manager will be discussed.

     [(d)] (f)  Directors shall not expend association funds for their travel, directors' fees, and per diem, unless owners are informed and a majority approve of these expenses; provided that, with the approval of the board, directors may be reimbursed for actual expenditures incurred on behalf of the association.  The minutes shall reflect in detail the items and amounts of the reimbursements.

     [(e)] (g)  Associations at their own expense shall provide all board members with a current copy of the association's declaration, bylaws, house rules, and, annually, a copy of this chapter with amendments.

     [(f)] (h)  The directors may expend association funds, which shall not be deemed to be compensation to the directors, to educate and train themselves in subject areas directly related to their duties and responsibilities as directors; provided that the approved annual operating budget shall include these expenses as separate line items.  These expenses may include registration fees, books, videos, tapes, other educational materials, and economy travel expenses.  Except for economy travel expenses within the State, all other travel expenses incurred under this subsection shall be subject to the requirements of subsection [(d).] (f)."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

INTRODUCED BY:

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